2.2 ERMUSR 09-12-2017 ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
August 8,2017
Members Present: Chair John Dietz;Vice Chair Daryl Thompson; Commissioners Al Nadeau,
Mary Stewart,and Matt Westgaard
ERMU Staff Present: Troy Adams,General Manager;
Theresa Slominski,Finance and Office Manager;
Mark Fuchs,Electric Superintendent;
Mike Tietz,Technical Services Superintendent;
Eric Volk,Water Superintendent;
Michelle Canterbury,Executive Administrative Assistant;
Jennie Nelson,Customer Service Manager
Others Present: Cal Portner, City Administrator;Peter Beck,Attorney;and
Dave Nathe,Resident of 15260 Cleveland Street
1.0 GOVERNANCE
1.1 Call Meeting to Order
The regular meeting of the Utilities Commission was called to order at 3:30 p.m.by Chair Dietz.
1.2 Pledge of Allegiance
The Pledge of Allegiance was recited.
1.3 Consider the Agenda
There were no additions or corrections to the agenda.
Moved by Commissioner Nadeau and seconded by Commissioner Stewart to approve the
August 8,2017,agenda. Motion carried 5-0.
2.0 CONSENT AGENDA(Approved By One Motion)
Chair Dietz had a question on the performance metrics score card. Staff responded.
Moved by Commissioner Thompson and seconded by Commissioner Westgaard to approve
the Consent Agenda as follows:
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2.1 July Check Register
2.2 July 11,2017 Regular Meeting Minutes
2.3 2017 Second Quarter Utilities Performance Metrics Score Card Statistics
Motion carried 5-0.
3.0 OPEN FORUM
No one appeared at this point in the agenda for open forum.
4.0 POLICY&COMPLIANCE
4.1 Delegation to Management Policies
Mr. Adams presented for consideration the next five delegation to management policies that
consultant John Miner had developed: G.4f Employee Interests; G.4g Organization, Staffing,
and Compensation; G.4h Financial Planning and Budgeting; G.4i Financial Condition and
Transactions; and G4j Cost Allocation and Recovery. Mr. Adams stated that staff had the
opportunity to work through the five policies and had vetted them with John Miner and
Attorney Beck. Mr. Adams reached out to the Commission to see if they had any questions.
Commissioner Stewart had a question on item number two of the G.4j Cost Allocation and
Recovery Policy regarding the frequency of once every ten years for the cost-of- service rate
studies. She also inquired as to whether they were done internally or outsourced. Mr. Adams
responded that we have historically used the same third party for this service and that we had
just done one last year for the electric. He stated that the way the policy is written it requires us
to do one at least once every ten years, but also allows for sooner at Management or
Commission discretion. There was discussion.
Moved by Commissioner Nadeau and seconded by Commissioner Stewart to adopt the
Delegation to Management Policies. Motion carried 5-0.
4.2 Information Security Committee
Mr. Adams presented his staff report. Mr. Adams explained that even though the Committee
has been created as a management advisory Committee, it had been determined that it would
be beneficial to have a Commission and Council representative on the Committee who would
have working knowledge of committee initiatives which may require approval through the
budgeting process. Mr. Adams requested the Commission select and appoint a Commission
representative to the Information Security Committee.
Commissioner Stewart stated that she had served on a similar board at her previous employer
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and volunteered for the position if the other Commissioners were in favor.
Chair Dietz inquired as to whom else would be serving on the Committee. Mr.Adams
responded that it would be comprised of equal representation from ERMU and the City and
that the ERMU Committee would include: a Commissioner,the General Manager, a field
manager; an administrative manager, and an information technology employee. There was
discussion. -
Moved by Commissioner Nadeau and seconded by Commissioner Thompson to appoint
Commissioner Stewart to the Information Security Committee. Motion carried 5-0.
5.0 BUSINESS ACTION
5.1 Financial Report—June 2017
Ms. Slominski presented the June 2017 financial report. Chair Dietz inquired as to why the
interest expense was up $100,000 on the electric side. Staff responded that this is a result of
the additional 10 million dollar bond that interest payments are being made on. Chair Dietz
also had a question on the large increase in revenue for water connection fees. Mr. Volk
responded that this is due to new service connections for residential and commercial
development.
Commissioner Stewart had a question on the electric interest/dividend income. She inquired as
to what may be causing the almost $21,000 variance from 2016 to 2017, as well as the 26%
variance from the 2017 budgeted amount. Staff indicated that they would need to look back to
get the specifics on this and would speak to this in next month's staff report. Commissioner
Stewart had one other question on the $24,000 credit on the electric disconnect and reconnect
fees. Staff responded.
Moved by Commissioner Westgaard and seconded by Commissioner Thompson to
receive and file the June 2017 Financial Report. Motion carried 5-0.
5.2 2017 Second Quarter Delinquent Items
Ms. Slominski presented the delinquent items for the first quarter which included a delinquent
amounts listing report totaling$9,348.08 for all services. She also presented the delinquent
items comparisons for 2016/2017, identifying the categories and running totals. Ms. Slominski
shared that our totals for the year for collections and write-offs are well below the national
average, at .00039%.
Moved by Commissioner Nadeau and seconded by Commissioner Stewart to approve the
Second Quarter Delinquent Amounts Listing. Motion carried 5-0.
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5.3 2018 Budget: Schedule; Travel and Training; Dues, Subscriptions, and Fees
Ms. Slominski gave an overview of the budgeting process schedule and presented the Travel
and Training budget which reflected a 10.8% increase over the prior year. She explained that
this is a result of adding two additional Commissioners, additional training for the Engineer
position, and training for an additional Lineworker and Locator added in 2017. The
Commission had a few questions. Staff responded. For the American Public Power
Association (APPA) Legislative Round-up line item, Commissioner Thompson recommended
that once the new Commissioners have the opportunity to attend,that we only budget for one
staff member to attend. After discussion the Commission recommended budgeting for one
new Commissioner to attend the event with Mr. Adams in 2018 and the other new
Commissioner attend with Mr. Adams in 2019.
The Dues, Subscriptions, and Fees budget had a 4.8% increase, reflecting various known and
projected increases for 2018. Ms. Slominski presented the proposed budget and pointed out the
new expenses and the other line items that we were paying for that had previously not made it
onto this itemized list. Chair Dietz noted that the increase in the budget was largely due to the
SCADA OSI fee going from $7,000 to $24,000. Staff provided some background information
and further explanation for the increase to this line item.
3.0 OPEN FORUM
As there was someone now present for Open Forum, Chair Dietz requested they come forward
and state their name and address for the record. Mr.Nathe introduced himself and stated his
address was 15260 Cleveland Street. He shared that he was a new customer that had been
recently transferred over from Connexus Energy. He informed the Commission that his power
had been shut off today because he had refused to pay the garbage portion of the utility bill. He
explained that he has used ACE Solid Waste for the past 27 years for his abutting commercial
property and sees no reason why he should have to pay a second refuse company,Randy's
Sanitation, for disposal of his residential trash. There was discussion on the city's garbage
ordinance and the date it went into effect. Attorney Beck pointed out that the ordinance
provides for organized collection for residential properties only. There was further discussion.
Chair Dietz stated that the garbage issue should really be addressed through the city, as the
utilities are only responsible for billing and collection for the service. Mr.Nathe stated that the
utilities are the ones that are holding him hostage for not paying his garbage bill. Attorney
Beck clarified that Mr.Nathe was delinquent on his utility bill because all the services are
billed as one.
Based on the city's garbage ordinance going into effect back in the 90's, Commissioner
Westgaard questioned why this has just come to light. Mr.Nathe said it was due to the transfer
in utilities services from Connexus Energy to Elk River Municipal Utilities. Chair Dietz
explained that once the utilities began billing for the electric service it was discovered that Mr.
Nathe had not been participating in the cities organized garbage collection, and had been using
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his commercial dumpster for disposal of his residential trash. Attorney Beck stated that the
organized collection does not apply to commercial businesses. There was discussion. Mr.
Nathe stated that if we continue to require him to have, and pay for, organized residential
garbage collection, he will no longer use our electric service and is requesting that any electric
poles located in his yard be removed. Mr.Nathe excused himself from the meeting.
There was discussion among the Commission and staff. Attorney Beck cautioned staff on
proceeding forward with any type of pole removal until he has a chance to review the legalities
of that process.
5.4 Field Services Facility Expansion Project
Mr. Volk presented his staff report and explained where we were at in the process of relocating
the wetlands at the Field Services Facility site. He explained that once the relocation is
approved, ERMU will need to purchase wetland credits from the City of Elk River in the
amount of$27,991.66.
Mr. Volk shared that staff has also been working with Kodet Architectural Group in order to
determine an overall footprint for the expansion. The focus has been to ensure a design that
will allow for efficient workflow,provide for a more organized facility, and have a
neighborhood friendly appearance. Staff presented the existing site plan and future site plan to
the Commission. Mr. Adams stated that the footprint the architect has come up with addresses
the two major concerns we had going into this expansion project; getting all of our equipment
indoors, and securing the site. There was discussion.
Staff reached out to the Commission for two volunteers to be part of a workgroup that will be
involved with the design process of the new Field Services Facility. Commissioner Nadeau
and Thompson volunteered.
Moved by Commissioner Stewart and seconded by Commissioner Thompson to approve
the purchase of wetland credits from the City of Elk River. Motion carried 5-0.
6.0 BUSINESS DISCUSSION
6.1 Staff Updates
Mr.Adams announced that he would be out of the office and unavailable for communication the
week of August 14.He informed the Commission and the management team that in his absence he
was designating Mr.Fuchs as his temporary successor.The Commission was in consensus of the
designation.
Mr.Adams provided an update on the quick trip they just took to perform the pre-tank inspection for
the new Waco 2 Substation transformer. Mr.Fuchs added that almost everything used to build this
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transformer was made in America, and that he was very impressed with that.
Mr.Adams shared that we were are in the process of launching a Facebook page and are leaning
towards using it for one way communication only. The pros and cons of one way communication
verses two way communication was discussed. Commissioner Stewart asked if there was a push
from customers to have a Facebook page. Mr.Adams responded that there had not been a push;the
intent behind launching it would be to promote our events,communicate programs,and educate the
public.After discussion on who would manage the Facebook page and the time constraints in doing
so, Commission consensus was to begin with one way communication.
Ms. Slominski indicated in her staff report that discussions had continued on planning for multiple
billing cycles in 2018. Chair Dietz asked if things were still a go to switch over to weekly billings
beginning in January. Ms. Slominski shared that at this point we are committed to making the
change,pending any major problems that come to light.
Mr.Fuchs had nothing additional to add to his staff report. Chair Dietz asked if we had an outage
over by Twin Lakes the other day. Mr. Fuchs responded that we did have one which was a result of
someone hitting a guy wire with their vehicle.
Mr.Tietz stated in his staff report that the locating department had a total of 423 locate tickets in
July. Chair Dietz asked if this was an increase or decrease from the last couple months. Mr.Tietz
stated that it was about a 29%decrease from last month. Staff explained that the decrease in the
volume from the prior month is a little misleading as many of the tickets were for multiple locations.
6.2 Future Planning
Chair Dietz announced the following:
a. Regular Commission Meeting—September 12, 2017
b. Quorum—MMUA Summer Meeting—August 21-23, 2017
c. Quorum—Power Your Future &EV Charging Station Ribbon Cutting—September 13,
2017, 6-8 pm
A notice of quorum will be posted for the MMUA Summer Meeting and the Power Your
Future &EV Charging Station Ribbon Cutting Event.
6.3 Other Business
There was no other business.
7.0 ADJOURN REGULAR MEETING
There being no future business Chair Dietz adjourned the regular meeting of the Elk River
Municipal Utilities Commission at 4:53 p.m.
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Minutes prepared by Michelle Canterbury.
John J.Dietz,ERMU Commission Chair
Tina Allard,City Clerk
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